Problems of Inflation in Rome
There were many problems from inflation. One problem was that the death toll went up from the inability for plebians to afford food. Another problem was that the empire kept trying to bribe the barbaric tribes even though the empire was almost out of money. Trading, something that the Roman empire relied greatly on, became less and less affordable as inflation went on. Prices were going up, so the percentage of plebians rose, while the percentage of patricians fell as they could no longer afford their homes or lifestyle. Some shops would close down since the people could not afford their products, or the products were less a priority than food and clothing. The emperors kept trying to bribe other nearby countries and tribes and eventually, the empire's moneys dried up. The civil service the crumbled because of the lack of money and the rising numbers of the plebians. As the inflation went on, many Roman citizens resorted to barter.
Problems of Inflation in the US
-The income changes- the income will increase faster for some companies, as will prices increase for some companies. -if gas prices go up, it will cause problems with truckers, and airports, so there will be less of those because they are affected more than other people. -inflation hurts lenders, but benefits borrowers.
-impossible to plan ahead and put money aside if the inflation rates are going up since you won't know how much to put aside.
-companies are using a lot of time in money trying to avoid inflation, rather than putting all that time and money in productive assets.
-The US has tried to lower inflation by using deflation, even though it went up rapidly again to the percentage that it was before 2009.
-2008 had the most inflation over a course of 13 years.
-The inflation rates in the US are as follows:
Year
January
February
March
April
May
June
July
August
September
October
November
December
Average
2012
2.93%
2.87%
2.65%
2.30%
1.70%
1.66%
1.41%
1.69%
1.99%
2.16%
1.76%
1.74%
2.07%
2011
1.63%
2.11%
2.68%
3.16%
3.57%
3.56%
3.63%
3.77%
3.87%
3.53%
3.39%
2.96%
3.16%
2010
2.63%
2.14 %
2.31 %
2.24 %
2.02 %
1.05 %
1.24%
1.15 %
1.14 %
1.17 %
1.14 %
1.50 %
1.64%
2009
0.03%
0.24%
-0.38%
-0.74%
-1.28%
-1.43%
-2.10%
-1.48%
-1.29%
-0.18%
1.84%
2.72%
-0.34%
2008
4.28%
4.03%
3.98%
3.94%
4.18%
5.02%
5.60%
5.37%
4.94%
3.66%
1.07%
0.09%
3.85%
2007
2.08%
2.42%
2.78%
2.57%
2.69%
2.69%
1.36%
1.97%
2.76%
3.54%
4.31%
4.08%
2.85%
2006
3.99%
3.60%
3.36%
3.55%
4.17%
4.32%
4.15%
3.82%
2.06%
1.31%
1.97%
2.54%
3.24%
2005
2.97%
3.01%
3.15%
3.51%
2.80%
2.53%
3.17%
3.64%
4.69%
4.35%
3.46%
3.42%
3.39%
2004
1.93%
1.69%
1.74%
2.29%
3.05%
3.27%
2.99%
2.65%
2.54%
3.19%
3.52%
3.26%
2.68%
2003
2.60%
2.98%
3.02%
2.22%
2.06%
2.11%
2.11%
2.16%
2.32%
2.04%
1.77%
1.88%
2.27%
2002
1.14%
1.14%
1.48%
1.64%
1.18%
1.07%
1.46%
1.80%
1.51%
2.03%
2.20%
2.38%
1.59%
2001
3.73%
3.53%
2.92%
3.27%
3.62%
3.25%
2.72%
2.72%
2.65%
2.13%
1.90%
1.55%
2.83%
2000
2.74%
3.22%
3.76%
3.07%
3.19%
3.73%
3.66%
3.41%
3.45%
3.45%
3.45%
3.39%
3.38%
Inflation still exists today, although not nearly as large a problem as it was in ancient Rome. For example, the inflation affects different businesses and careers in different ways. When the price of gas goes up, it will affect truckers and airports more than it will vets, or schools; so there will be less truckers and airports due to the increase in prices of gas. When inflation comes, the income will increase faster for some companies than others; the prices will follow a similar trend. If someone lends money, during inflation, the lenders will be hurt, but the borrowers benefited. It is near to impossible to plan ahead and put money aside if the costs keep going up during inflation. Companies have tried to use a lot of time and money trying to avoid inflation which makes the problem worse, rather than putting that time and money into productive assets which would help the company if the assets were made. In 2009, the US tried to lower inflation by causing DEFLATION, although the inflation rate went rapidly back up to the rate that it had been before 2009. Out of 13 years (2000-2012) 2008 had the highest inflation rate average.
Inflation Solutions
Inflation could be stopped using technology and the knowledge of this world today by that:
-Emperors stop minting coins with less silver and gold
-Farmers and other product-making parties mass produce their products and/or crops
-lower taxes on the plebians, but leave the taxes on the patricians the same.
-Turn Rome into a communist empire where there is no money at all.
-control prices in a small range to limit expense.
romantimemachineinflation.weebly.com
Problems of Inflation in Rome
There were many problems from inflation. One problem was that the death toll went up from the inability for plebians to afford food. Another problem was that the empire kept trying to bribe the barbaric tribes even though the empire was almost out of money. Trading, something that the Roman empire relied greatly on, became less and less affordable as inflation went on. Prices were going up, so the percentage of plebians rose, while the percentage of patricians fell as they could no longer afford their homes or lifestyle. Some shops would close down since the people could not afford their products, or the products were less a priority than food and clothing. The emperors kept trying to bribe other nearby countries and tribes and eventually, the empire's moneys dried up. The civil service the crumbled because of the lack of money and the rising numbers of the plebians. As the inflation went on, many Roman citizens resorted to barter.
Problems of Inflation in the US
-The income changes- the income will increase faster for some companies, as will prices increase for some companies.
-if gas prices go up, it will cause problems with truckers, and airports, so there will be less of those because they are affected more than other people.
-inflation hurts lenders, but benefits borrowers.
-impossible to plan ahead and put money aside if the inflation rates are going up since you won't know how much to put aside.
-companies are using a lot of time in money trying to avoid inflation, rather than putting all that time and money in productive assets.
-The US has tried to lower inflation by using deflation, even though it went up rapidly again to the percentage that it was before 2009.
-2008 had the most inflation over a course of 13 years.
-The inflation rates in the US are as follows:
Inflation Solutions
Inflation could be stopped using technology and the knowledge of this world today by that:
-Emperors stop minting coins with less silver and gold
-Farmers and other product-making parties mass produce their products and/or crops
-lower taxes on the plebians, but leave the taxes on the patricians the same.
-Turn Rome into a communist empire where there is no money at all.
-control prices in a small range to limit expense.
Sources:
"Chapter 7: Inflation." Chapter 7: Inflation. N.p., n.d. Web. 15 Jan. 2013. (ideas for problems in ancient Rome http://www.oswego.edu/~edunne/200ch7.html)
Gill, N. S. "Economic Reasons for the Fall Of Rome." About.com Ancient / Classical History.About.com, n.d. Web. 15 Jan.2013.(http://ancienthistory.about.com/od/fallromeeconomic/a/econoffall.htm)
"Fall of the Roman Empire." Rome.info , Decline of Ancient Rome. Rome.info, 15 Jan. 2013. Web. 15 Jan. 2013. (http://www.rome.info/history/empire/fall/)